Texas Federal Court Strikes Down DOL Rule Increasing Salary Threshold for Overtime Exemptions

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On November 15, 2024, in a highly anticipated decision, a Texas federal district court judge struck down the U.S. Department of Labor’s final regulation that increased the salary threshold for the “white collar” exemptions under the Fair Labor Standards Act (FLSA). The next salary threshold increase under the rule was scheduled to take effect on January 1, 2025. However, because the court’s ruling applies to all employers nationwide, that increase in the overtime threshold will no longer take effect.

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